In a bid to ensure supplies from more than one source, Kingfisher Airline is now planning to buy jet fuel from private player Reliance industries limited.
The move comes amid squabbling between the state held oil firms and Kingfisher over occasional delays over the payment of dues.
Sources have confirmed 3 to 4 meetings between top managements of Kingfisher and Reliance. Kingfisher will most likely have to pay cash for all the oil it buys. If Reliance’s secures the order, it will help it expand in the most lucrative segment of oil refining.
Kingfisher presently buys 1300-1350 kilolitre jet fuel every month on an average and has a cash and carry arrangement with HPCL.
While Kingfisher may be signaling that it is not dependent on state led firms for fuel, there is little doubt that Reliance will also demand cash for fuel purchases. For debt ridden Kingfisher, that comes as little relief, in market where oil prices remain volatile and high.
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